Correlation Between Kingsoft Cloud and Urgently Common
Can any of the company-specific risk be diversified away by investing in both Kingsoft Cloud and Urgently Common at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Kingsoft Cloud and Urgently Common into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kingsoft Cloud Holdings and Urgently Common Stock, you can compare the effects of market volatilities on Kingsoft Cloud and Urgently Common and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Kingsoft Cloud with a short position of Urgently Common. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingsoft Cloud and Urgently Common.
Diversification Opportunities for Kingsoft Cloud and Urgently Common
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kingsoft and Urgently is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Kingsoft Cloud Holdings and Urgently Common Stock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Urgently Common Stock and Kingsoft Cloud is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Kingsoft Cloud Holdings are associated (or correlated) with Urgently Common. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Urgently Common Stock has no effect on the direction of Kingsoft Cloud i.e., Kingsoft Cloud and Urgently Common go up and down completely randomly.
Pair Corralation between Kingsoft Cloud and Urgently Common
Allowing for the 90-day total investment horizon Kingsoft Cloud is expected to generate 5.46 times less return on investment than Urgently Common. But when comparing it to its historical volatility, Kingsoft Cloud Holdings is 7.32 times less risky than Urgently Common. It trades about 0.05 of its potential returns per unit of risk. Urgently Common Stock is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 50.00 in Urgently Common Stock on August 30, 2024 and sell it today you would earn a total of 3.00 from holding Urgently Common Stock or generate 6.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kingsoft Cloud Holdings vs. Urgently Common Stock
Performance |
| Timeline |
| Kingsoft Cloud Holdings |
| Urgently Common Stock |
Kingsoft Cloud and Urgently Common Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kingsoft Cloud and Urgently Common
The main advantage of trading using opposite Kingsoft Cloud and Urgently Common positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingsoft Cloud position performs unexpectedly, Urgently Common can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Urgently Common will offset losses from the drop in Urgently Common's long position.| Kingsoft Cloud vs. Oneconnect Financial Technology | Kingsoft Cloud vs. Global Business Travel | Kingsoft Cloud vs. Alight Inc | Kingsoft Cloud vs. CS Disco LLC |
| Urgently Common vs. C3 Ai Inc | Urgently Common vs. Shopify | Urgently Common vs. Workday | Urgently Common vs. Intuit Inc |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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